 Both Inheriting and Selling a Home in 2010 - HELP!
I am in a quandary and reaching out here for information. I searched the threads but couldn't find anything specific to my situation
I've inherited a home this year that I'd like to sell. However, because of the step-up basis being eliminated in 2010, I am trying to get a handle on the tax implications.
The original cost of the home in 1990 was $85k. The most recent appraisal was $452k and I can easily sell it for $500k. I live in NY City (8.875% S&L tax) and the home is located there also.
As I understand it, because the death/inheritance took place in 2010, using a selling price of $500k I will have a capital gain of $415k as opposed to the $48k it would have been in a previous year, correct?
Is there ANYTHING I could do to avoid/lessen this huge tax implication?
I really would rather sell it but would holding it for a relatively short period change anything?
For the record, I am currently unemployed and will have an annual income of appr. $25k.
Thanks in advance for any help!
Last edited by TaxGuru : 10-30-2010 at 10:42 AM.
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